01—Abstract
Summary
Summary of the 10-Q filed October 23, 2026. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) reported a strong third quarter and nine-month period ending September 30, 2026.
The company demonstrated robust revenue growth, a significant increase in net income, and maintained excellent credit performance. Total revenues net of interest expense rose by 9%a year-over-year for the quarter and 10% for the nine months. This growth was driven by strong Card Member spending, successful product refreshes, and expansion in the International Card Services segment.
Net income saw a substantial increase of 28%b for the quarter and 17% for the nine months, largely benefiting from a gain on the sale of an equity interest in Global Business Travel Group, Inc. Provisions for credit losses decreased year-over-year due to reserve releases and stable delinquency rates, underscoring the resilience of American Express's premium customer base. The company also continued to return capital to shareholders through dividends and share repurchases, maintaining a healthy Common Equity Tier 1 capital ratio.
02—Key points
Key Highlights
- Total revenues net of interest expense increased by 9% for the three months ended September 30, 2026, reaching $20.1 billion, and by 10% for the nine months ended September 30, 2026, reaching $58.6 billion.
- Net income surged by 28% to $3.7 billion for the three months ended September 30, 2026, and by 17% to $9.8 billion for the nine months ended September 30, 2026.
- Provisions for credit losses decreased by 23% for the three-month period and 14% for the nine-month period, reflecting improved credit performance and reserve releases.
- Billed business grew by 8% year-over-year for the quarter and 9% for the nine months, driven by strong consumer and international spending.
- Diluted earnings per common share increased by 31% to $5.42 for the three months ended September 30, 2026, and by 20% to $14.22 for the nine months ended September 30, 2026.
- Card balances and other loans increased by 8% year-over-year.
- The company returned $2.2 billion to shareholders in the form of share repurchases and dividends during the third quarter, and $7.4 billion for the nine-month period.
03—Questions
Frequently Asked Questions
What drove the significant increase in net income for the third quarter?
The significant increase in net income was largely driven by a $982 million pre-tax gain ($751 million after tax) from the sale of American Express's equity interest in Global Business Travel Group, Inc. (GBTG). This gain contributed to a 28% year-over-year increase in net income for the quarter.
How is the company managing credit risk, and what is the current credit performance?
American Express is experiencing excellent credit performance. Provisions for credit losses decreased by 23% for the quarter and 14% for the nine months. Net write-off rates have declined, and delinquency rates remained stable, supported by the company's premium customer base and a strategy focused on attracting high-credit-quality customers.
What is the outlook for revenue growth and what are the key growth drivers?
The company projects continued revenue growth, with total revenues net of interest expense increasing by 9% for the quarter and 10% for the nine months. Key growth drivers include strong Card Member spending, successful product refresh strategies, momentum in the International Card Services segment, and growth in Card balances and net interest income.
How is American Express returning capital to shareholders?
American Express is actively returning capital to shareholders through dividends and share repurchases. In the third quarter, $2.2 billion was returned, consisting of $1.6 billion in share repurchases and $0.6 billion in common share dividends. For the nine-month period, $7.4 billion was returned.
04—Continue